1. What is Motor Vehicle Tax?

Motor Vehicle Tax is a levy imposed by the Uganda Revenue Authority (URA) on imported vehicles. It's calculated based on the CIF (Cost, Insurance, and Freight) value of the vehicle and the applicable tax rate.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value in UGX
• \( Rate \) — Applicable tax rate as a percentage

Explanation: The tax is calculated by multiplying the CIF value by the tax rate (expressed as a decimal).

3. Importance of Vehicle Tax Calculation

Details: Accurate tax calculation is crucial for importers to budget properly, comply with URA regulations, and avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter the CIF value in UGX and the tax rate as a percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in CIF value?
A: CIF includes the cost of the vehicle, insurance costs, and all freight charges to bring the vehicle to Uganda.

Q2: How do I know the correct tax rate?
A: Tax rates vary by vehicle type, age, and engine capacity. Consult URA's current tax schedule or contact URA directly.

Q3: Are there other fees besides this tax?
A: Yes, there may be additional fees like VAT, withholding tax, and registration fees depending on the vehicle and circumstances.

Q4: Can I pay in installments?
A: Generally no, URA requires full payment before vehicle clearance, but special arrangements may be possible in some cases.

Q5: What if I disagree with URA's valuation?
A: You can appeal the valuation through URA's dispute resolution process, providing supporting documentation.